The stars may indeed be aligning for gold stocks as the eurozone faces the prospect of a full-blown banking crisis potentially
taking hold over the next few weeks. That would force the European Central Bank to provide further monetary easing.
Meanwhile, Germany has already signalled it would tolerate higher inflation at home even as economic growth throughout
much of the eurozone is slowing. While the combination of higher inflation and lower economic growth is a terrible
combination for most stocks, it could be just what the doctor ordered for gold miners. Under such a scenario, bullion prices
would likely strengthen while mining input prices should be kept in check under a slowing economy. Even if such a
stagflationary scenario does not unfold, the risk may be enough for some institutional investors to boost exposure to gold
miners as a hedge.
I think the markets suck..
Gold in particlual..
Portee